Sales: Billion, up 44% YoY Ordinary Income: 3.17 Billion, up 34% YoY (Compares with 25% YoY Growth in Previous Interim)

Transcription

1 8th Term Interim FY12/07 Earnings Announcement Presentation August 10th, 2007 en-japan inc. (Stock Code: 4849)

2 8 th Term Interim FY12/07 Highlights Our First Time to Achieve 10 Billion in Sales During an Interim Period!! Sales: Billion, up 44% YoY Ordinary Income: 3.17 Billion, up 34% YoY (Compares with 25% YoY Growth in Previous Interim) Solid Earnings Growth Ordinary Income: 3.17 Billion, Up 34% YoY 1Q: 1.63 Billion, Up 14% YoY 2Q: 1.54 Billion, Up 65% YoY (Absorbed increased personnel costs) Our Main Site en Career Change Info Growing Strongly Sales: 60.2 Billion, Up 57% YoY 1Q: 53% Growth YoY 2Q: 61% Growth YoY * Our other sites are also trending favorably We Are On Target to Achieve Our Earnings Projections Sales Growth YoY 42% Achievement ratio of FY12/07 projections as of interim period Ordinary Income 44% Growth YoY 42% Achievement ratio of FY12/07 projections as of interim period 45% 2

3 8 th Interim Period Overall Earnings Performance 12,000 Sales rise 44% YOY to 10.2 billion, ordinary income rises 34% YOY to 3.1 billion. 10,000 Net Sales Ordinary Income +44% 10,218 8, % 7,097 6,000 4,000 2, % +32% +48% 2, % 2,074 1, Jan-Jun Jan-Jun Jan-Jun Jan-Jun (FY2001) (FY2002) (FY2003) (FY2004) 5,064 1,884 Jan-Jun 2005 (FY2005) 2,362 Jan-Jun 2006 (FY2006) 3,172 Jan-Jun 2007 (FY2007) 3

4 8 th Term Interim Segment Performance Companywide Mid-career hiring business New graduate hiring business ,218 53% 43% 45% 7,097 33% 5,064 37% 33% 31% 1,405 2,074 2,738 3, ,884 2, ,137 53% 43% 45% 4,399 44% 6,177 34% 40% 40% 3, ,405 2,074 2, ,938 2, % % -16% % Net Sales Ordinary Income Education/ Evaluation business % 33% 10% Ordinary Income Rate 4

5 Sales Breakdown by Product ( million yen ) Q 3, , % 10.0% 16.8% 8.5% 5.1% 5.6% Q 6, , % 9.4% 14.9% 7.0% 5.4% 4.5% 0% 20% 40% 60% 80% 100% [ e n ] C a re e r C h a n g e I n f o [ e n ] T e m po ra ry P la c e m e n t I n f o [ e n ] P a rt- tim e J o bs P lu s [ e n ] C a re e r C h a n g e C o n s u lta n t [ e n ] J o b I n f o f o r S tu de n ts [ e n ] O th e r Other: Hiring outsourcing business, education/evaluation business, etc. 5

6 Transition of Quarter Performance (Companywide) 3,574 4,308 41% 34% 35% 3,518 40% 3,523 2,495 2,569 26% 26% 31% 2,909 1, ,027 1, ,338 5,514 5,135 5,083 35% 32% 30% 1,907 1,634 1, Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q Net Sales Ordinary Income Ordinary Income rate 26%(645) 28%(708) 28%(823) 34%(1,199) 26%(927) 30%(1,038) 30%(1,297) 27%(1,496) 32%(1,622) 26%(1,319) 26%(925) 21%(531) 20%(574) 23%(795) 24%(1,042) 23%(1,262) 20%(1,024) 25%(1,285) 17%(429) 18%(647) 05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q Labor costs relative to sales Advertising, sales promotion costs relative to sales 95.1% 85.3% 149.7% 76.0% 72.9% 56.2% 19.7% 47.8% 43.2% 41.2% 37% 7% 48.1% 30.3% 108.2% 56.7% 14.3% 43.7% 64.8% 44.3% 05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q Sales Growth rate Ordinary Income Growth rate 6

7 8 th Interim Period Income Statement Jan-Jun 2006 Jan-Jun 2007 % of sales % YOY change % of sales % YOY change Net Sales 7, % 40.1% 10, % 44.0% Cost of Sales % 56.3% % 44.6% Personnel % 76.8% % 34.5% Other % 45.4% % 51.1% Gross Profit 6, % 38.6% 9, % 43.9% SGA (Sales,general&administrative) 4, % 46.5% 6, % 50.8% Personnel 1, % 69.8% 1, % 40.0% Advertising, sales promotion 1, % 36.9% 2, % 57.0% Other % 35.0% 1, % 55.7% Operating income 2, % 26.9% 3, % 32.4% Ordinary income 2, % 25.3% 3, % 34.3% Net income 1, % 25.5% 1, % 37.5% (Sales: bn) en Career Change Info: bn en Career Change Consultant: + 240mn en Temporary Placement Info: + 330mn en Part-time Jobs Plus: + 180mn en Job Info for Students: + 110mn Others: + 50mn (CGS: + 90mn) Increase in personnel due to business expansion (Other costs: + 210mn) Fair, conference costs: + 100mn, depreciation from site renewals: + 50mn, consigned work fees: + 50mn (Personnel costs: + 560mn) Increased personnel costs associated with business expansion, fortified marketing (Ad, marketing costs: bn) Ads on TV, stations, mass transportation, other promotional activities strengthened (Other: + 420mn) Rent, other costs from expanded HQ floor space: + 180mn, depreciation: + 40mn, add personnel, consumables: + 20mn 7

8 8 th Interim Period Mid-Career Hiring Business Jan-Jun 2006 Jan-Jun 2007 % of sales % YOY change % of sales % YOY change Net Sales 6, % 40.4% 9, % 47.9% Cost of Sales % 69.4% % 31.4% Gross Profit 5, % 38.5% 8, % 49.3% SGA (Sales,general&administrative) 3, % 47.4% 4, % 51.8% Personnel % 83.1% 1, % 46.7% Advertising, sales promotion 1, % 31.1% 2, % 54.4% Other % 51.4% % 52.8% Operating income 2, % 28.3% 3, % 45.9% Ordinary income 2, % 27.1% 3, % 47.9% Mid-Career Hiring Business: [en] Career Change Info, [en] Career Change Consultant, [en] Temporary Placement Info, [en] Part-time Jobs Plus, other mid-career hiring related (Sales: bn) en Career Change Info: bn en Career Change Consultant: + 240mn en Temporary Placement Info: + 330mn en Part-time Jobs Plus:+ 180mn (CGS: + 140mn) Contents production costs accompanying expansion in our business: + 80mn, Worker fair costs: + 40mn (Labor costs: + 460mn) Personnel costs associated with expansion of our business and fortification of our marketing efforts (Ad, promotion costs: + 900mn) Fortification of TV commercials and other promotional activities (Others: + 300mn) Costs associated with expansion of floor space, including rent: + 130mn, depreciation: + 30mn, additional personnel, consumable costs: + 20mn 8

9 8 th Interim Period New Graduate Hiring Business Jan-Jun 2006 Jan-Jun 2007 % of sales % YOY change % of sales % YOY change Net Sales % 37.8% % 16.9% Cost of Sales % 41.3% % 74.1% Gross Profit % 36.4% % -2.4% SGA (Sales,general&administrative) % 45.6% 1, % 47.2% Personnel % 46.9% % 25.1% Advertising, sales promotion % 127.2% % 80.4% Other % 3.6% % 62.3% Operating income % 109.4% % - Ordinary income % 127.1% % - New Graduate Hiring Business: [en] Job Info for Students, other new graduate hiring related (Sales: + 140mn) Site sales: 710mn (+ 110mn) Other (Hiring outsourcing): 260mn (+ 30mn) (Sales: + 160mn) Depreciation from sites: + 50mn, conference expenses: + 50mn, server maintenance fees: + 40mn (Labor costs: + 100mn) Costs associated with increased personnel accompanying business expansion (Ad, marketing: + 150mn) Conference related, other expenses (Others: + 100mn) Rent and other costs associated with expansion of floor space at our headquarters: + 40mn, consigned work fees: + 10mn 9

10 8 th Interim Period Education/Evaluation Business Jan-Jun 2006 Jan-Jun 2007 % of sales % YOY change % of sales % YOY change Net Sales % 42.0% % 22.6% Cost of Sales % -36.3% % 17.2% Gross Profit % 67.4% % 23.2% SGA (Sales,general&administrative) % 8.6% % 35.3% Personnel % 31.3% % 18.9% Advertising, sales promotion % % - Other % -27.7% % 85.0% Operating income % 489.1% % 7.4% Ordinary income % 440.0% % 7.4% 10

11 8th Term Performance [en]career Change Info Annual Sales Trend YOY growth 9,175 6,520 4, % 2, % 40.7% 41.3% FY2003 FY2004 FY2005 FY2006 Achieved record high sales in 2Q of 3.05bn, up 1.16bn or 61.5% YoY Average unit sales price rose to 552,000 on favorable sales of hiring outsourcing (web agent) and other options Job seeking users rose to 1.69 million as of end June Maintained high client (job offering company) satisfaction of 91.4% (as of March) Attained record high user satisfaction level of 98.2% (as of June) 2,972 2,964 3,052 Quarterly Sales Trend 1,942 1,845 1,890 1,695 1,479 1,502 1,379 1, , Q 2Q 3Q 4Q 03.1Q 2Q 3Q 4Q 04.1Q 2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 11

12 Career Change Site Survey 2007 (en Career Change Info) Survey by Cybozu Media and Technology Co., Ltd nd Place Private Sector Site 1 Recruit Navi Next (Points) st Place Private Sector Site 1 (Points) Hello Work Internet Service 1 st Place Overall, Best of 30 Websites (Points) 1 En Japan Hello Work Internet 84.7 Service 3 En Japan En Japan Recruit Navi Next Recruit Navi Next Hello Work Internet Service 4 Toraba-yu Net Mainichi Career Navi Yahoo! Recruit Navi Toraba-yu Net Yahoo! Recruit Navi e-aidem Chosen as the Top Site of 30 Sites as the Most Well Heard of Site, Actually Used Site, Frequently Used Site * Metaphase Co., Ltd. and Chance International Inc. conducted the survey of workers who changed jobs within the past year did and did not use a website. 1,182 responses. * This survey measured the brand recognition, foot traffic, repeater usage, user satisfaction, usage direction, credibility, and effectiveness of job websites * Yahoo! Recruit Navi is a job portal site comprised of From A Navi, Shot Works, Recruit Navi Dispatch, Recruit Agent, Recruit Navi New Graduate, Entre Net 12

13 8th Term Performance [en]career Change Consultant Annual Sales Trend YOY growth 1, % 26.8% 1, % 1, % Against the backdrop 2Q sales reached a record high of 490mn, up 120mn or 34.8% YoY. Thus we maintained our top position in the industry. We had 349 companies listing jobs on our site as of end June, up 47 companies YoY, and our average pricing remained at record high levels. Due to the favorable growth in our earnings, we may be able to achieve our targets one year early. FY2003 FY2004 FY2005 FY2006 Quarterly Sales Trend Q 2Q 3Q 4Q 03.1Q 2Q 3Q 4Q 04.1Q 2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 13

14 8th Term Performance [en]temporary Placement Info Annual Sales Trend 2,557 YOY growth 1, % 72.3% 60.9% % 605 FY2003 FY2004 FY2005 FY2006 In 2Q we achieved record high sales of 780mn, up 160mn or 26.9% YoY. We maintained our top position in the industry. Due to the effectiveness of our sites and the high performance for price profile we provide, we are selected more often by our customers. The number of job advertising companies stood at 588 as of end June, up 106 YoY. The number of users also steadily expanded reaching 386,000 as of June end, up 113,000 YoY Quarterly Sales Trend Q 2Q 3Q 4Q 03.1Q 2Q 3Q 4Q 04.1Q 2Q 3Q 4Q 05.1Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 14

15 8th Term Performance [en]part-time Jobs Plus Annual Sales Trend YOY growth 299 FY % FY2006 In 2Q we achieved record high sales of 275mn, up 42.5% or 80mn YoY Our monthly sales exceeded 100mn for the first time in June The number of job advertising companies stood at 361as of end June, up 78 companies YoY We saw an increase in job seeking users from our i-mode site launched in April and other cellular telephone sites. Since the opening of our site, we have seen over 4,000 part time workers hired as full time workers Quarterly Sales Trend Q 2Q 3Q 4Q 06.1Q 2Q 3Q 4Q 07.1Q 2Q 15

16 8th Term Performance [en]job Info for Students Annual Sales Trend YOY growth , , % 2, ,051 FY2004 FY2005 FY % * Includes 7 months of sales from business transferred from Nihon Brain Center Others Net Sales In 2Q due to changes in sales realization methods and the marketing efforts to open our 2009 website (launch in October 2007), sales trended sideways (Excluding the sales realization method change factor, sales would have risen 8% YoY) The number of advertising companies on our 2008 website rose by 248 YoY to 1,645 companies as of end June The number of a professional s job articles rose by 340 YoY to 2,691 as of end June We received a high 85% customer satisfaction rating for our 2008 website Quarterly Sales Trend 87% 1,077 YOY growth 71% 58% 65% % % % % 04.2Q 04.3Q 04.4Q 05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q 07.1Q 07.2Q Others Net Sales Growth 70.9% 58.7% 38.0% 37.3% 86.9% 65.4% 31.0% -0.2% * 2Q/2004 includes sales from the month of June only 16

17 en Job Info for Students 2 nd Half Projections 2008 Website Overview Sales rise 47% YoY to 2.64bn (from 3Q2006 to 2Q2007) Client satisfaction 85%, intent of repeat usage 88%, largest number of users per company Viewed as the most effective site to access to highly motivated students. Earnings foundation solidified 2 nd Half Projections Preparing for Launch of Our 2009 Website 1 Secure job seeking users 2 Marketing strategy 3 Earnings strategy Fortify our brand and strengthen relations with universities to secure job seeking users Allocating resources properly to capture marketing opportunities during the first half of the season Review lower profitability services, and conference strategy Achieved sales of 3.5bn, ordinary income of 150mn!! 17

18 Projection Achievement Ratio Analysis Units: million Interim FY12/06 Results Interim FY12/07 Full Year Projections en Japan Company Wide (Sales) 5,135 5,082 10,217 42% 44% 23,200 en Career Change Info (Mid-career hiring business) 3,009 3,101 6,110 44% 13,740 en Career Change Consultant % 1,730 en Temporary Placement Info ,522 51% 3,000 en Part Time Jobs Plus % 1,060 New Graduate Hiring Business % 3,500 Training, Evaluation Business % 171 Ordinary Income (Company Wide) 1,634 1,538 3,172 42% 45% 7,000 0% 20% 40% 60% 80% 100% 18

19 Our Projections and Future Business Strategy FY12/07 Projections Our Future Business Strategy Sales: 23.2bn, Ordinary Income: 7.0bn We had 1,135 employees as of June end. We expect to have 1,150 as of the year end. en Career Change Info: Market conditions remain strong, but clients to choose service providers on effectiveness of sites Expanding advertisements (1,791 during 2Q, expect 2,200 to 2,400 during the second half) Using the high effectiveness of our site, we will maintain both high prices while offering high price performance to clients Using our comprehensive service line-up to expand sales, harvesting new clients Costs in the 2 nd Half Advertising, promotional costs to remain within budget ( 6.3bn in the full year) Personnel costs to remain within budget as well (Human Resources Related Businesses) Employee Retention Program targetting workers and their superiors (P&R Support) started (Overseas) 英才網聯 ( 北京 ) 科技有限公司 科技有限公司 to turn to profits Earnings in Interim FY12/07 > Sales: 7.28mn Yuan ( 120mn), Ordinary Income: 500,000 Yuan ( 8mn) Earnings projections in full year FY12/07 > Sales: 18mn Yuan ( 280mn), Ordinary Income: 1mn Yuan ( 16mn) 2006: -4.8mn Yuan (- 7.3mn) (New Businesses) Preparing to Launch New Businesses Our Venture Investment Track Record Invested 130mn in 5 companies as of June end 300mn investments in 10 companies in FY12/07 19

20 Performance Forecast (Companywide) 40,000 (%) 100% 35,000 30, % 80% 25,000 20, % +26% 60% 15, % 40% 10,000 5,000 20% 0 FY2005 FY2006 FY2007 FY2008 FY2009 Net Sales 11,491 16,919 23,200 29,200 34,200 Ordinary Income 3,827 5,607 7,000 9,500 11,500 Number of employees ,150 1,300 1,430 Ordinary Income Rate 33.3% 33.1% 30.2% 32.5% 33.6% 0% 20

21 IR Administration Office TEL: Mail: URL: Cautionary Statement This material is for informational purpose only. You are fully responsible for the final decision to invest in the company. The statements included in these documents that are not historical facts are forward-looking statements which reflect management s current views with respect to certain future events and financial performance of the company. The company makes no guarantee or promise as to the accuracy or completeness of the information provided here and shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The content is subject to change without notice hereon. 21